Why Are Groupon Executives Dropping Like Flies?
An internal memo obtained by Reuters shows Groupon (NASDAQ:GRPN) to be reshuffling its senior management positions in an effort to stabilize its floundering European business.
The changes at the world’s largest online daily deals provider will include the departure of Groupon’s Chief of International Business, Veit Dengler. He will be the latest executive to leave or decide to leave the company in recent months, following the departure of head of national sales Lee Brown in August.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
No reason was given by the memo for Dengler’s departure, but for the struggling company, fixing European operation is an imperative. Groupon’s second-quarter results, which missed analysts’ revenue estimates, showed problems with the business and drove stock prices lower. Europe, in particular, had proven to be a challenge; in addition to the Euro Zone’s sovereign debt crisis and economic slowdown, merchants in the region found Groupon’s discounts to be too large.
Dengler will be replaced by Senior Vice President of Sales, Chris Muhr, who joined the company from Citydeal after it was acquired by Groupon in 2010.
According to Reuters, Groupon’s operations chief Kal Raman said in the internal memo, “We’ve made great progress in the last few months, but we still have a lot of work to do, particularly in Europe.”
Don’t Miss: Facebook: The Next E-Commerce Giant?